From Silicon to Services: How Intellectual Capital Shapes Taiwan’s Economic Transformation

Abstract

In today’s knowledge-driven economy, Intellectual Capital (IC) is a crucial driver of corporate success and sustainability. This study examines the impact of IC—comprising Human Capital (HC), Structural Capital (SC), and Relational Capital (RC)—on firm performance across Taiwan’s key industries: manufacturing, technology, and services. Through a comprehensive literature review and empirical analysis, the research explores how sector-specific IC management strategies enhance financial performance, innovation, and corporate value. The findings highlight the pivotal role of HC in fostering innovation, SC in optimizing operational efficiency, and RC in strengthening market positioning and customer loyalty. Additionally, the study identifies significant barriers to effective IC management in Taiwan, including challenges in strategic integration and the measurement of intangible assets. The results underscore the importance of tailored IC management practices for maintaining competitiveness in global markets, particularly in high-tech sectors. This research also contributes to the theoretical frameworks of Resource-Based View (RBV), Knowledge-Based View (KBV), and Human Capital Theory (HCT), offering strategic insights for policymakers and business leaders in leveraging IC for sustainable growth and innovation in emerging economies.